Cincy Reporter

The Ohio House of Representatives has passed Bill 187, also known as the Homeowners Relief Act, in an effort to protect homeowners from property tax hikes. The legislation aims to provide increased relief to homeowners facing rising property taxes by modifying the Tax Commissioner's procedures for property tax assessment ratio studies.

State Representative Adam Bird expressed his gratitude for the bill's passage, stating, "Passed: Thanks to Representatives Hall and @AdamCBird for all of their work on passing House Bill 187!" This bill, introduced as a response to significant property value increases in certain counties, has now advanced to the Senate for further consideration.

According to a press release by State Rep. Bird, the Homeowners Relief Act is necessary due to inflationary pressures that have affected the residential real estate market. One example cited is the recommendation by the Tax Commissioner for a 43% property value increase in Clermont County in just one year. To provide relief to Ohioans, the bill proposes that property taxes be based on a three-year average.

The assessment of property values under House Bill 187 would take into account the values of the county over the past three years. Notably, counties such as Butler and Clermont have experienced significant property value increases, with the Tax Commissioner recommending a 43% rise for property values and a substantial 110% increase for farmland in these areas.

Despite the intentions behind the bill, there has been opposition from county auditors and treasurers associations. State Rep. Troy, a critic of the legislation during committee hearings, highlighted concerns that implementing the bill could impede the ability to issue tax bills on time in the coming year. This could potentially lead to financial challenges for local government entities in need of timely tax payments in 2024. Critics view the bill as a temporary solution to address property tax issues while the legislature continues to pursue more comprehensive tax reform.

It is worth noting that Ohio's overall tax system is ranked 37th on the 2023 State Business Tax Climate Index. The index evaluates the quality of tax systems, prioritizing their structure and organization. Ohio utilizes a graduated individual income tax system, with rates ranging from 2.765% to 3.990%. The state also has a sales tax rate of 5.75% with a maximum local rate of 2.25%, resulting in an average combined state and local sales tax rate of 7.24%.

The Ohio Homeowners Relief Act aims to provide homeowners with much-needed relief from rising property taxes. As the bill progresses to the Senate, its impact on homeowners and local government entities will continue to be a topic of discussion and debate.